This Website Has Been Moved to a New Link


Loading

P2-36A TREASURE HUNT EXPLORATION COMPANY

Price: $3.99


P2-36A Correcting errors in a trial balance [15–25 min]
The trial balance for Treasure Hunt Exploration Company does not balance.

TREASURE HUNT EXPLORATION COMPANY
Trial Balance
February 29, 2012

Cash 6,300
Accounts receivable 600
Supplies 400
Exploration equipment 22,300
Computers 49,000
Accounts payable 2,800
Note payable 18,500
Jones, capital 50,000
Jones, drawing 4,000
Service revenue 4,100
Salary expense 1,400
Rent expense 800
Advertising expense 900
Utilities expense 800
Total 91,900 75,400

The following errors were detected:
a. The cash balance is overstated by $5,000.
b. Rent expense of $340 was erroneously posted as a credit rather than a debit.
c. A $6,800 credit to Service revenue was not posted.
d. A $400 debit to Accounts receivable was posted as $40.
e. The balance of Utilities expense is understated by $70.
f. A $900 purchase of supplies on account was neither journalized nor posted.
g. Exploration equipment should be $16,490.

Requirement
1. Prepare the corrected trial balance at February 29, 2012. Journal entries are not
required

No comments:

Post a Comment